The Registrar of Companies (RoC) in Mumbai has initiated criminal proceedings against Sahara Housing Investment Corp (SHICL) and its directors for not filing balance sheet and annual returns for 2009-10 even after 15 months. It has moved the Additional Chief Metropolitan Magistrate at Mumbai’s Esplanade Court under Sections 162 and 220 (3) of the Companies Act regarding this.
SHICL is one of the two Sahara group entities which have been asked by the Securities and Exchange Board of India (Sebi) to refund money collected by issuing optionally fully convertible debentures (OFCDs).
An email questionnaire sent last week and subsequent reminders did not elicit any response from the Sahara group spokesperson.
Lack of even routine information like amount collected and number of investors has hampered and delayed investigation by various agencies, including Sebi, allege investors.
Last month, a Mumbai-based investors group had filed a complaint against the group firm for hampering investigations by not disclosing financial information.
“RoC, Mumbai, has informed the investors that SHICL has not filed its balance sheet and profit and loss account since 2010. This is a deliberate act to hamper the ministry of corporate affairs (MCA), Sebi and Supreme Court’s investigations. This act warrants six-month imprisonment of all directors. Investors request MCA to impose the imprisonment as this is a deliberate act,” the Investors and Consumer Guidance Society had said in a letter to the corporate affairs minister.
MCA had said in a statement it would not become a party to the dispute between Sebi and Sahara. However, investors questioned why the ministry remained silent in the petition when many of the violations were of the Companies Act, which was under its purview.
Incorporated in 2004, SHICL was originally known as Sahara India Trustee Co Ltd (SITCL). According to the initial public offer draft of Sahara Prime City, filed with Sebi on September 29, 2009, the principal business of SITCL was “undertaking trusteeship”.
However, it got shareholders’ approval two weeks before the IPO offer filing to alter the memorandum of association to venture into new businesses like “real estate, plots, residential buildings, houses/apartments and commercial office space”.
On October 5, 2009, SITCL was renamed SHICL and started issuing OFCDs.
